To determine the appropriate P/E multiple for an individual firm simply take the average P/E multiple for the firm's industry and multiply it by the beta for the individual firm.

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The appropriate P/E multiple for an individual firm depends on a variety of factors beyond just the industry average and the firm's beta. Other important considerations include the firm's growth prospects, financial health, competitive position, and market conditions. It is important to perform a thorough analysis of the firm and its industry before determining an appropriate P/E multiple.

To Determine the Appropriate P/E Multiple for an Individual Firm